Into the Big Blue Yonder. After a successful nine-year run at the helm of the company, IBM CEO Samuel Palmisano stepped down. But the 60-year-old executive left with some great parting gifts. IBM has known as Big Blue, but given the generosity of Palmisano's package, perhaps it should be called Big Green. The total deal, Footnoted.com reports, is worth more than $170 million, including: a $65.7 million cash payout for stock options and restricted stock units; $1.5 million for life from a retention plan; $4.9 million per year in cash for five years; and a big fat pension that was worth $29.8 million as of the end of last year.
well lets see 10,000 Band 4s losing about 10% of their pay, probably equates to about 50 to 75 million bucks.
SP has run the ship well, but the dollars he is getting paid does seem quite excessive.
I know that the man for many years worked 6 or 7 days a week at an average of 14 hours a day. He has been dedicated to the company and I am sure he has made quite a sacrifice on many personal fronts... hard to put a value with that.
Sam is overpaid. Lloyd Blankfein is overpaid. Bob Nardelli, etc. Lessee, oh yes, Steve Jobs was... no, he took $1 salary at Apple.
I think anyone who is overpaid is overpaid COMPARED TO YOU. THAT is bad. Everyone should be paid the same as you. Even Sam.
Oh wait, we can pay the same as they do in Bangalore, $2 an hour there. Great Idea.
And the 10% pay cut is real.
To talk to your example about the woman you supported....
Who she knows and the fact she brings in results is irrelevant.
What is relevant is if the business decides that her "results" and connections has a value of say $500,000 a year, but they are paying her $750,000 a year, then she is due for a pay cut.
So when you met Donald was he nice? Was your life enriched much due to meeting him?
You are funny... first you criticize me in telling me that I am overstating the obvious.....
Brilliance, sheer genius to realize that in some companies there are those that are overpaid and those that are underpaid. You move to the head of the class. Bah.
and now you are asking me to define OVERPAID... come on man / woman, be consistent. Stop twisting in the wind and doing a Bill Clinton.
Based on your statement we both agree there are overpaid and underpaid employees (including CEOs)... so if a company determines that a person or group of people are not worth what they are getting paid (value statement for the company) then cutting their pay is an intelligent move. Will mistakes be made? Sure, but in those cases people will just leave.
Do you really KNOW IBM is making a bad decision in cutting certain employees pay?
A woman I supported at Aon was an exceptional sales person, an ExVP and new Donald Trump personally, met him too. Is she overpaid? She brings in results.
CEO's are often overpaid or over-compensated when tossed out, such as Bob Nardelli at Home Depot. Severance packages qualify on that score, don't you AGREE?????